2. Conventional Wisdom And The Crisis
Why it is that Fiscal policy is back in fashion.
1. One argument suggests that as Monetary and credit policy reached its limit policymakers had no other choice but to rely on fiscal policy more heavily.
2. The other argument is that as the recession across countries was expected to last long, fiscal stimulus would have enough time to yield beneficial i
debt affected by this crisis, so this Greek issue was concerned about in this sense. The Greek financial crisis was controlled by Greek government and also European Union. However, the fundamental solution was not done. So, in our report, we will examine closely about the Greek financial crisis- the causes and background, fiscal and monetary policy about the crisis, and the current situations.
crisis and non-euro zone countries
2.1 Causes of eurozone crisis and structural problems
2.1.1 Progress of the euro zone financial crisis and its causes
In the conditions of the global financial and economic crisis, a majority of European countries launched large programs to reanimate the economic situation and save jobs. As the massive fiscal spending is inevitable in the process of addressin
Overall condition of non-Eurozone
Many people think Europe debt crisis raised only by Eurozone countries.
Hungary is not included country as Eurozone. But early 2012, Hungary faced a crisis.
Czech had high economy stability throughout Europe but now the value of money has declined.
Non-Eurozone countries are also getting hard times.
The countries wanting to join Eurozone are of two minds
crisis :
- Real estate values rose
High current deficits was risen simultaneously
in many countries
- Extraordinary levels of leverage used
The financial crisis were influenced by global imbalance :
Asians accumulated foreign reserves for better future (Saving Glut)
- Saving Glut influenced interests rate of developed countries to be low
Many methods of investment wer